Question: Suppose an analyst estimates that free cash flow will be $2.85 million in year 5. What is the present value of this free cash

Suppose an analyst estimates that free cash flow will be $2.85 million

Suppose an analyst estimates that free cash flow will be $2.85 million in year 5. What is the present value of this free cash flow if the company cost of capital is 12%, the WACC is 7%, and the equity cost of capital is 15%? Round your answer to the nearest $1,000. An example answer would be 1,024,000.

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